Collaboration to help thwart counterfeits with molecular tagging of
capsules

February 26, 2018 05:30 AM Eastern Standard Time

STONY BROOK, N.Y. & MUMBAI, India--(BUSINESS WIRE)--Applied DNA Sciences, Inc. (NASDAQ:APDN) (“Applied DNA” or the
"Company"), and ACG have signed a memorandum of understanding (MoU) that
will allow ACG to utilize Applied DNA’s proven SigNature®
molecular tagging and authentication technologies to develop
molecularly-tagged empty hard-shell capsules for offering to ACG’s
customers to enhance product traceability and authentication. The MoU is
expected to be followed by a definitive agreement.

The empty capsules market
witnessed healthy growth during the last decade and is expected to grow
at a CAGR of 7.2% between 2016 and 2021 to reach USD 2.13 billion by
2021.

The development of molecularly-tagged empty hard-shell capsules will
allow ACG’s customers to enhance every distribution channel’s integrity.
It will also provide pharmaceutical companies with increased and assured
capabilities when investigating suspected counterfeit medicines and help
enhance patient and regulator confidence in pharmaceutical companies and
their supply chains.

Applied DNA’s SigNature technology allows the embedding of a bespoke
molecular tag into one or more capsule component materials. Each
customer’s molecular tag can be formulated to specifically adhere
tenaciously to a wide variety of substrates and is optimized to allow
for authentication at any point in the pharmaceutical supply chain.

On the association between ACG and Applied DNA, Mr. Selwyn Noronha, CEO,
ACG Capsules said, “With the increasing threat of counterfeits in the
pharmaceutical supply chain and regulations mandating companies to
deploy strategies such as serialization and to have greater awareness,
there is a need for innovative and effective solutions for product
authentication, track and trace and supply chain integrity. We strongly
believe that our association with Applied DNA is a step towards nipping
the counterfeiting problem that is grappling the industry today. With
the introduction of stricter regulatory norms and measures across the
globe, the pressure lies increasingly in improving existing supply chain
safeguards. The association will equip pharmaceutical companies with
greater capabilities to thwart the threat of counterfeits by providing
amplified traceability solution across the supply chain.”

Elaborating on the association, Dr. James Hayward, president and CEO of
Applied DNA said “We are proud to announce the signing of the MoU and
are excited by ACG’s development of on-dose authentication for
hard-shell capsules powered by the Company’s SigNature molecular tagging
and authentication technologies. The ability to forensically test a
capsule in the field and quickly prove its provenance is a powerful tool
for all nodes of the pharmaceutical supply chain and will ensure a more
secure and traceable global pharmaceutical supply chain.”

About Applied DNA Sciences

Applied DNA is a provider of molecular technologies that enable supply
chain security, anti-counterfeiting and anti-theft technology, product
genotyping and DNA mass production for diagnostics and therapeutics.

Applied DNA makes life real and safe by providing innovative,
molecular-based technology solutions and services that can help protect
products, brands, entire supply chains, and intellectual property of
companies, governments and consumers from theft, counterfeiting, fraud
and diversion. The proprietary DNA-based CertainT® platform
can be used to identify, tag, test, and track products, to help assure
authenticity, origin, traceability, sustainability and quality of
products.

SigNature® DNA describes the core technology ingredient that
is at the heart of a family of uncopiable, security and authentication
solutions such as SigNature®T and fiberTyping®,
targeted towards textiles and apparel, BackTrac® and DNAnet®,
for anti-theft and loss prevention, and digitalDNA®,
providing powerful track-and-trace. All provide a forensic chain of
evidence, and can be used to prosecute perpetrators. Applied DNA
Sciences is also engaged in the large-scale production of specific DNA
sequences using the polymerase chain reaction.

The ACG group is the only supplier in the world offering integrated
manufacturing solutions for the pharmaceutical industry. The company’s
diverse product range of Capsules, Films & Foils, Engineering and
Inspection systems don’t just meet, but exceeds the demands of
international regulatory requirements. ACG is committed to just one
goal: to offer everything needed for efficient capsule and tablet
manufacturing. ACG has over 5 decades of experience and is present in
over 100 countries, with over 4,500 employees around the world. Our
customer-centric approach has won us many loyal, satisfied customers and
partners by nurturing relationships with dignity and transparency.

The statements made by Applied DNA in this press release may be
“forward-looking” in nature within the meaning of the Private Securities
Litigation Act of 1995. Forward-looking statements describe Applied
DNA’s future plans, projections, strategies and expectations, and are
based on assumptions and involve a number of risks and uncertainties,
many of which are beyond the control of Applied DNA. Actual results
could differ materially from those projected due to our lack of
significant revenues, limited financial resources, limited market
acceptance, history of net losses, market competition and various other
factors detailed from time to time in Applied DNA’s SEC reports and
filings, including our Annual Report on Form 10-K filed on December 28,
2017 and our subsequent quarterly report on Form 10-Q filed on February
8, 2018, which are available at www.sec.gov.
Applied DNA undertakes no obligation to update publicly any
forward-looking statements to reflect new information, events or
circumstances after the date hereof to reflect the occurrence of
unanticipated events, unless otherwise required by law.